Budget 2020: The macros that matter at a glance

SUMMARY

The union budget is around the corner and the slowdown in the economy has meant that Finance Minister Nirmala Sitharaman’s task is cut out. Will this be a budget for the common man? What will the FM do to spur consumer demand and will she cut taxes? What's also equally important is the budget math. From growth to the fiscal deficit to tax collections what are the big-budget numbers to keep an eye on? Here is a good guide to all the macro figures to keep an eye out on.

By CNBC-TV18Feb 1, 2020 6:38:45 AM IST (Updated)

Cutting expenditure is the last thing investors or businesses would want from the government in the current economic scenario

The Indian economy has been struggling with a prolonged slowdown and GDP growth in the September quarter dipped to 4.5 percent, lowest in over six years

The monumental dilemma before FM Sitharaman is the trade-off between fiscal discipline and creating jobs. The government is likely to restrict fiscal deficit target for FY21 at 3.4 – 3.5 percent

For the current fiscal year, the deficit is expected to breach the budgeted target by 20-30 bps. Reports expect the government to project a real GDP growth rate of 6.5 percent and inflation at 4 percent taking nominal growth to 10.5 percent

Analysts peg the shortfall in tax collections in the financial year 2019-2020 to be between Rs 1.7 lakh crore and Rs 2.95 lakh crore

In Budget 2019, no changes were made in the income tax slab. In fact, the deduction under Section 80C, which is limited to Rs 1.5 lakh now, was last raised in 2014

Boosting investments and promoting capital formation would be the dominant theme in the finance minister's speech on February 1, and hence proposals regarding LTCG norms, dividend distribution tax norms could be looked at. The government may set FY21 divestment target at around Rs 1 lakh crore